Dash Riprock is a cost analyst with Sade Insurance Company, Safe is applying standards to tis claims payment operations. Claims payment is a repetitive operation that could be evaluated with standards. Dash used time and motion studies to identify an ideal standard of 36 claims processed per hour. The Claims Processing Department manager. Henry Tudor, has rejected this standard and has argued that the standard should be 30 claims processed per hour. Henry and Dash were unable to agree, so they decided to discuss this matter openly at a joint meeting with the Vice President of Operations, who would arbitrate a final decision. Prior to the meeting, Dash wrote the following memo to the Vice President: To: Anne Boeyn, Vice President of Operations From: Dash Riprock Re: Standard in the Claims Processing Department As you know, Henry and I are scheduled to meet ith you to discuss our disagreement about the appropriate standards for the Claims Processing Department. I have conducted time and motion studies and have determined that the ideal standard is 36 claims processed per hour. Henry argues that 30 claims processed per hour would be more appropriate. I believe he is trying to “pad” the budget with some slack. I’m not sure what he is trying to get away with, but I believe a tight standard will drive efficiency up in his area. I hope you will agree when we meet with you next week. Discuss the ethical and professional issues in this situation.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

100%

Dash Riprock is a cost analyst with Sade Insurance Company, Safe is applying standards to tis claims payment operations. Claims payment is a repetitive operation that could be evaluated with standards. Dash used time and motion studies to identify an ideal standard of 36 claims processed per hour. The Claims Processing Department manager. Henry Tudor, has rejected this standard and has argued that the standard should be 30 claims processed per hour. Henry and Dash were unable to agree, so they decided to discuss this matter openly at a joint meeting with the Vice President of Operations, who would arbitrate a final decision. Prior to the meeting, Dash wrote the following memo to the Vice President:

To: Anne Boeyn, Vice President of Operations

From: Dash Riprock

Re: Standard in the Claims Processing Department

As you know, Henry and I are scheduled to meet ith you to discuss our disagreement about the appropriate standards for the Claims Processing Department. I have conducted time and motion studies and have determined that the ideal standard is 36 claims processed per hour. Henry argues that 30 claims processed per hour would be more appropriate. I believe he is trying to “pad” the budget with some slack. I’m not sure what he is trying to get away with, but I believe a tight standard will drive efficiency up in his area. I hope you will agree when we meet with you next week.

Discuss the ethical and professional issues in this situation.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Decision to Sell before or after additional processing

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.